The strongest defensible manager-run estimate is approximately $63,000 to $379,000 in annual pre-tax operating earnings, with a base scenario near $193,000. The 2026 Beef ’O’ Brady’s Franchise Disclosure Document reports franchised Adjusted Gross Sales but not franchised owner profit, so this is a Mode C, FDD-anchored scenario—not an official earnings claim.
This range is an independent analytical scenario. It is not an Item 19 financial performance representation by FSC Franchise Co., LLC. It combines 2025 franchised sales figures and recurring-fee terms from the 2026 FDD with company-operated EBITDA margins and a separately identified manager-wage benchmark. Actual results can differ materially by location, sales volume, food cost, labor, occupancy, financing, owner involvement, format, and execution.
Legal franchisor: FSC Franchise Co., LLC. FDD issuance date: April 29, 2026. Item 19 status: official 2025 Adjusted Gross Sales for mature franchised Family Sports Pubs and official company-operated expense and EBITDA bands; no franchised-unit EBITDA or owner compensation is disclosed. Population: 95 mature franchised pubs in the 2025 sales table and 26 mature company-operated pubs in the company economics tables. Standard format context: a 3,500–4,500 square-foot Family Sports Pub. External benchmark: U.S. Bureau of Labor Statistics food service manager pay.
FDD citations in this article refer to the Beef ’O’ Brady’s 2026 Franchise Disclosure Document, including Items 5, 6, 7, 15, 19, and 20. No matching public FDD hosted on a verified franchise-controlled domain was found, so the document citations are intentionally unlinked.
ScenarioBase manager-run earnings
Rounded annual pre-tax operating earnings before interest, depreciation, capital spending, and personal taxes.
Official2025 median Adjusted Gross Sales
Revenue for mature franchised Family Sports Pubs; revenue is not owner income.
OfficialMature franchised pubs
The 2025 Item 19 sales table excludes four non-mature franchised outlets.
OfficialAt or above average sales
38 of 95 mature franchised pubs met or exceeded the $1.699 million average.
OfficialRoyalty plus fund contribution
The 2026 FDD states a 5% royalty and a current 2.5% Marketing and Development Fund contribution.
BenchmarkManager labor value
May 2024 national median annual wage for food service managers, used only for the owner-operator labor scenario.
What does Beef ’O’ Brady’s Item 19 actually disclose?
Item 19 officially discloses sales for franchised mature pubs and EBITDA for company-operated mature pubs; it does not disclose franchised owner earnings. The applicable period is fiscal 2025, and a “mature” pub had been open and operating for at least 18 months before December 31 of the measured year.
The central franchised result is $1,546,382 in median Adjusted Gross Sales. The average was $1,699,499, but only 38 of 95 pubs—40%—met or exceeded that average. That gap is why the median is the cleaner central revenue anchor.
| 2025 franchised mature cohort | Adjusted Gross Sales | Outlet count | How it is used |
|---|---|---|---|
| Bottom-quartile average | $1,149,716 | 24 | Conservative revenue anchor |
| All mature pubs, median | $1,546,382 | 95 | Base revenue anchor |
| All mature pubs, average | $1,699,499 | 95 | Reference only; 40% met or exceeded it |
| Top-quartile average | $2,447,505 | 24 | Upside revenue anchor |
Adjusted Gross Sales is a revenue measure after limited source-defined exclusions. It does not deduct food, labor, occupancy, local advertising, technology, repairs, insurance, financing, taxes, or owner distributions. The 2026 FDD, Item 19, pp. 49–58, must therefore be paired with a defensible expense model before discussing owner earnings.
Population limits matter. The 2025 table excludes four franchised outlets that had not reached the 18-month maturity threshold and excludes three franchised pubs that closed during 2025. Item 20 reports 99 franchised outlets at year-end 2025 and notes that system counts include one Limited Service Family Sports Pub in Florida. The Item 19 tables do not separately isolate that limited-service outlet, so this article applies the estimate to the standard Family Sports Pub offer rather than treating every format as identical.
How is the annual owner-earnings range calculated?
The estimate applies the FDD’s matching company-operated EBITDA margin band to each franchised revenue anchor, then reduces the margin by 1.5 percentage points. The reduction reconciles the company-operated Item 19 “Royalty/Ad Fee” line of 6% with the current franchise agreement burden of 5% royalty plus 2.5% Marketing and Development Fund contribution.
The reproducible formula is: scenario revenue × (matching company-operated EBITDA margin − 1.5 percentage points). Results are rounded to the nearest $1,000. The calculation is an EBITDA-like pre-tax operating proxy: it excludes interest, income taxes, depreciation, amortization, financing principal, capital expenditures, and personal taxes.
| Scenario | Revenue anchor | FDD EBITDA band | Franchise-adjusted margin | Estimated earnings |
|---|---|---|---|---|
| Conservative | $1,149,716 | 7.0% | 5.5% | $63,000 |
| Base | $1,546,382 | 14.0% | 12.5% | $193,000 |
| Upside | $2,447,505 | 17.0% | 15.5% | $379,000 |
Estimated manager-run annual operating earnings
Three FDD-anchored scenarios, rounded to the nearest $1,000
Interpretation: the spread reflects both different franchised sales cohorts and different company-operated EBITDA bands. It is not a probability forecast and does not identify a “most likely” result. Source: Beef ’O’ Brady’s 2026 FDD, Item 19, pp. 49–57; Item 6, pp. 6–13.
Item 19 defines “Other Expenses” as all other operating expenses not included in cost of goods sold, labor, occupancy, and Royalty/Ad Fees. This model assumes routine local advertising, technology, website, POS support, insurance, repairs, merchant fees, and similar costs are captured there. Item 19 does not itemize that line, so the assumption must be verified rather than treated as a disclosed franchisee expense schedule.
How does owner involvement change the result?
The estimated manager-run result is the residual operating earnings shown above, while the estimated owner-operator benefit adds compensation for management labor actually performed. For the standard Family Sports Pub under the 2026 FDD, Item 15 requires a full-time operating partner or operating manager with day-to-day responsibility. This is not a passive-income structure.
The company-operated Item 19 labor line includes hourly and salaried employees, managers, bonuses, payroll taxes, benefits, and owner salary. Because normal management payroll is already inside the EBITDA proxy, an owner who genuinely replaces an equivalent paid food service manager can analyze a labor-value addback. The U.S. Bureau of Labor Statistics reports a May 2024 median annual wage of $65,310 for food service managers.
Manager-run earnings versus owner-operator benefit
Owner-operator benefit adds $65,310 of labor value only when the owner fully replaces equivalent paid management
Interpretation: the added $65,310 is compensation for full-time management work, not passive profit. It should not be added when a paid operating manager remains necessary. Sources: Beef ’O’ Brady’s 2026 FDD, Items 15 and 19; BLS Food Service Managers.
Which fees and operating costs move owner earnings most?
Food, labor, occupancy, and required marketing are the largest disclosed earnings drivers, while the current FDD’s percentage fees create a material fixed claim on sales. For a standard U.S. Family Sports Pub, the 2026 FDD states the following recurring obligations.
- Royalty Fee: 5% of Adjusted Gross SalesThe model uses the FDD rate, not a lower marketing-page figure.
- Marketing and Development Fund: currently 2.5%The FDD permits the required contribution to increase to 3.0%.
- Local advertising: 2.0% to 3.0% after the opening periodThe first five months require $5,000 of local advertising; thereafter the percentage applies to monthly Adjusted Gross Sales.
- Technology and website chargesItem 6 lists a $250 monthly IT Fee, a $100 monthly Website Fee, and a $20 monthly SIM-card charge. Item 7 also references a $400 monthly POS maintenance charge.
As checked July 21, 2026, the official Beef ’O’ Brady’s franchise qualifications and fee page displayed a 4% royalty, while the April 29, 2026 FDD states 5%. This article uses the FDD because it is the controlling disclosure evidence for the current offer. A buyer should obtain a written explanation of which rate will appear in the signed Franchise Agreement.
At the $1,546,382 base revenue anchor, the FDD’s 5% royalty, 2.5% fund contribution, and 2%–3% local advertising requirement equal approximately $146,906 to $162,370 per year before fixed technology charges. Those amounts are not subtracted again from the scenario because the company-operated EBITDA proxy already includes Royalty/Ad Fees and an all-other-expenses line. Double charging the same costs would understate the modeled result.
How much confidence should a buyer place in the range?
Confidence is LIMITED because the decisive profit margin comes from company-operated pubs rather than franchised pubs. The sales anchors are same-brand franchised facts, but the expense bridge is a proxy. The most important unresolved issue is whether franchised labor, local advertising, technology, repairs, delivery commissions, insurance, merchant fees, and maintenance behave like the company-operated “Other Expenses” and labor lines.
What should be verified before treating the estimate as decision-grade?
This is an uncertainty-control step: a buyer should reconcile the estimated range against written substantiation and actual franchisee profit-and-loss statements. The applicable population is the 2025 mature Family Sports Pub cohort, not a new opening, a limited-service outlet, or a multi-unit portfolio.
- Request Item 19 written substantiation. Confirm the store list, maturity dates, revenue bands, and treatment of closed or transferred pubs. The Federal Trade Commission explains that buyers may request substantiation for a financial performance representation.
- Interview mature franchisees in several sales bands. Ask for annual food cost, fully burdened labor, occupancy, local advertising, utilities, repairs, insurance, technology, delivery commissions, merchant fees, and EBITDA.
- Separate owner labor from business profit. Determine whether the owner replaces a general manager, supervises a manager, or remains outside day-to-day operations.
- Resolve the 4% versus 5% royalty discrepancy in writing. Use the signed agreement and current FDD terms, not a web page or verbal statement.
- Model debt service and capital replacement separately. This article excludes loan interest, principal payments, depreciation, remodels, equipment replacement, and personal income taxes.
- Do not multiply one-unit earnings mechanically. Multi-unit ownership changes manager coverage, shared overhead, opening schedules, ramp-up, and portfolio risk.
Item 20 reports 99 franchised outlets at December 31, 2025, up from 98 a year earlier. During 2025, four franchised outlets opened, two were terminated, one ceased operations, and six transferred to new owners. Those system movements do not prove profitability, but they are relevant when selecting franchisees for interviews and interpreting the mature-outlet sample.
What is the strongest defensible earnings takeaway?
A mature, manager-run Beef ’O’ Brady’s Family Sports Pub may produce roughly $63,000 to $379,000 in annual pre-tax operating earnings under this FDD-anchored scenario, with a base estimate near $193,000. The figure is scenario-based, not official franchised owner profit. The largest earnings driver is the combination of sales volume and labor efficiency. The largest unresolved uncertainty iswhether franchised expense structure matches the company-operated EBITDA proxy, especially within “Other Expenses.”
An owner who fully replaces equivalent paid management may analyze an estimated owner-operator benefit of approximately $129,000 to $445,000, with a base near $259,000; the added amount compensates the owner for full-time labor and is not passive business profit. Before relying on either range, a buyer should verify Item 19 substantiation, current fee terms, franchisee P&Ls, manager compensation, debt service, and capital expenditure needs through written records and structured interviews with current and former franchisees.